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Direct Tax Code| The direct tax code seeks to consolidate and amend the law relating to all direct taxes, namely, income-tax, dividend distribution tax, fringe benefit tax and wealth-tax so as to establish an economically efficient, effective and equitable direct tax system which will facilitate voluntary compliance and help increase the tax-GDP ratio. Another objective is to reduce the scope for disputes and minimize litigation. It is designed to provide stability in the tax regime as it is based on well accepted principles of taxation and best international practices. It will eventually pave the way for a single unified taxpayer reporting system.The salient features of the code are: * Single Code for direct taxes: all the direct taxes have been brought under a single Code and compliance procedures unified. This will eventually pave the way for a single unified taxpayer reporting system. * Use of simple language: with the expansion of the economy, the number of taxpayers can be expected to increase significantly. The bulk of these taxpayers will be small, paying moderate amounts of tax. Therefore, it is necessary to keep the cost of compliance low by facilitating voluntary compliance by them. This is sought to be achieved, inter alia, by using simple language in drafting so as to convey, with clarity, the intent, scope and amplitude of the provision of law. Each sub-section is a short sentence intended to convey only one point. All directions and mandates, to the extent possible, have been conveyed in active voice. Similarly, the provisos and explanations have been eliminated since they are incomprehensible to non-experts. The various conditions embedded in a provision have also been nested. More importantly, keeping in view the fact that a tax law is essentially a commercial law, extensive use of formulae and tables has been made. * Reducing the scope for litigation: wherever possible, an attempt has been made to avoid ambiguity in...

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...Union Cabinet on Thursday cleared the new DirectTaxCode Bill that proposes to raise the basic exemption limit for individual tax payers from Rs 1.6 lakh to Rs 2 lakh. So there will be no tax on incomes below Rs 2 lakh. The exemption for senior citizens has been raised to Rs 2.5 lakh, up from 2.25 lakh at present.
The taxcode will now be sent to a standing committee for clearance and is most likely to be presented in Parliament on Monday
New Income tax slab
0 -2 lk – Nil
2 -5 – 10%
5- 10 – 20%
&gt;10 – 30%
The whole objective of the DirectTaxCode is to provide predictability because now the tax rates will not be part of the Finance Act. It will be a part of the schedule which will be approve by Parliament along with the DirectTaxCode. DirectTaxCode incorporates all three directtax act; IT Act of 1961, Wealth Tax of 1957, Dividend Distribution Tax of 1997. All these are combined in DirectTaxCode," said Mukherjee.
Most probably on Monday it (DirectTaxCode) will be introduced in Parliament. It will be put on the website as soon as it's introduced in Parliament,"...

...51.61.71.81.91.101.111.122.12.22.32.42.52.62.72.82.92.103.13.23.33.3.13.3.23.43.53.63.73.7.13.83.93.104.14.24.35.15.25.35.4 | Chapter 1BackgroundForeword Introduction and OverviewStructure of the Income-Act, 1961, Wealth-Tax Act, 1957 and DTCObjective of the CodeSalient features of the CodeBasis of chargesResidential statusSource rulesTax rate and slabClassification of IncomeAggregation of income and carry forward of lossesChapter 2Computation of Total IncomeIncome from EmploymentIncome from House PropertyIncome from BusinessCapital gainDeduction from Total IncomeTaxation of non-profit organization NPOsWealth-TaxPersonal-TaxCorporate-TaxChapter 3International-TaxGrandfathering provision for SEZ development and SEZ unitsAnti-abuse provisionsGAARCFCTax-IncentivesTax treatment for saving- EET VIS-À-VIS EEE basisDTAACompliance and procedural provisionsA return of Income and assessmentAppealsRevision of orders by CITPenalties and prosecutionChapter 4NPOs related provisionsOther residuary provisionsOther provisionsChapter 5Current scenario(2011-12)ConclusionGlossaryBibliography | 445566789910111112131416192021222224242424252526262627272828292930353637 |
1.1 Background
 Present income-tax law in India of 1961 which replaced 1922 law.
 Draft DirectTaxCode (DTC) 2009 unveiled in August 2009 for simplification / keeping pace with changing business landscape.
 Indian Government received...

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The New TaxCode |
The New DirectTaxCode which was said to be introduced from the financial year, 2012-13 replacing the five decade old Income tax Act,1961 has the objective to make the Indian tax structure straightforward. The Income Tax Act 1961 has become very complex and virtually unintelligible to the common man by virtue of a complicated structure, numerous amendments, frequent policy changes and a multitude of judgments that gave varying interpretations to already undecipherable provisions. This complexity has not only increased the cost of compliance for the average tax payer, but also made it costly for the administration to collect tax. For the replacement of Income Tax 1961, the new DirectTaxCode which is completely new gives moderate relief to tax payers, reduce unnecessary exemptions and improve compliance for improving collections. The tax payers themselves can compute and file Income Tax Returns without the help of experts. This paper highlights the overview of the Direct Taxes Code in a nutshell. |
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Girish Kalla:IVth Year |
2/12/2013 |
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Table of Contents
INTRODUCTION 2
REASON FOR THE NEW TAXCODE 3
HIGHLIGHTS OF DTC 4
IMPACT OF...

...‘Macro-Economic Analysis for Rural Society’
Assignment on:
PROBLEMS AND PROSPECTS OF DIRECT TAXATION IN INDIA
By
Manu Bansal
(U311024)
PGDM-RM-I-2011
Submitted to
Prof.Sureswari Prasad Das
Xavier Institute of Management, Bhubaneswar
INRODUCTION TO DIRECT TAXATION:-
-------------------------------------------------
General meaning
In the general sense, a directtax is one paid directly to the government by the persons (juristic or natural) on whom it is imposed (often accompanied by a tax return filed by the taxpayer). Examples include some income taxes, some corporate taxes, and transfer taxes such as estate (inheritance) tax and gift tax. In this sense, a directtax is contrasted with an indirect tax or "collected" tax (such as sales tax or value added tax (VAT)); a "collected" tax is one which is collected by intermediaries who turn over the proceeds to the government and file the related tax return. Some commentators have argued that "a directtax is one that cannot be shifted by the taxpayer to someone else, whereas an indirect tax can be."
An 18th century writing about the tax explained:
| “The power of direct taxation applies to every individual, as...

...Assessee Perception towards DirectTaxCode (DTC)
1 1,2
Dept. of FMS, Gurukul Kangri University, Haridwar, UK, Indiatax regime as it is based on well accepted principles of taxation and best international practices. It will eventually pave the way for a single unified taxpayer reporting system. The Philosophy behind such replacement is to make the Direct Taxes Code very easy and simple so that tax payers themselves can, without help of experts compute and file Income Tax Returns. In planning and framing an ideal Income Tax Structure of a welfare state like ours the objectives are to give relief to the maximum possible extent to the lower and middle income group taxpayers and check creation of black money at one hand and to enable the Government to increase collection of tax revenue for development works on the other. The Direct Taxes Code (hereafter referred to as the ‘Code’) is not an attempt to amend the Income Tax Act, 1961; nor is it an attempt to “improve” upon the present Act. In drafting the Code, the Central Board of Direct Taxes (the Board) has, to the extent possible, started on a clean drafting slate. Some assumptions which have held the ground for many years have been discarded. Principles that have gained international...

...DirectTaxCode and Retail Industry
( Ms. Shishma Kushwaha
( ( Dr. M.K. Gupta
Abstract:
The new Directtaxcode is going to replace the existing income tax act of 1961 in India. It is expected to be passes in the monsoon session of 2010 and is expected to be enforced from 1st April 2011. It will completely overhaul the existing tax proposals for not only individuals but also for corporate houses and foreign residents. Tax rates and slabs have been modified. It proposes a significant increase in the tax rates and slabs for persona income tax and the tax deduction limit available on savings from Rs. 1 lakh at present to Rs. 3 lakh. It has also proposed to reduce the corporate tax rate from 33% (including surcharge) to 25% which will benefit various sectors in the economy. Retail industry is also one of the industries which are going to be affected by the new directtaxcode with the change in disposal income with the individual and change in corporate tax. In the given research paper, researcher has found that the DirectTaxCode will have a positive impact on the retail industry as it would help the Indian Retail Industry to face the challenges likewise to get more investment...

...COMPARISON BETWEEN EXISTING DIRECTTAX SYSTEM AND PROPOSED DIRECTTAXCODE IN INDIATax is defined as a compulsory payment made to the government by the individuals firms and companies without any expectation of a direct return. In general there are two types of tax system prevailing in our country. One is directtax and other is indirect tax. Here we will restrict our discussion to directtax only. Direct taxes are those the burden of which cannot be shifted, that is incidence and impact is on the same person. In India the tax law is governed by the finance act. The amendments are brought through budget every year which is issued on the last date of February. There have been various arguments in regard to the complexity of the tax laws. The new tax system which is proposed basically focuses on the principle of equality and simplicity. Instead of having different explanations of tax laws under different umbrellas all the laws will be brought under one head. The new tax system will be highly focused on the matter that the richer should pay heavier tax and vice-versa. For this regard the exemption limit and tax slabs will be expanded higher. Moreover under...